Investors are always on the hunt for long-term wealth stocks. You know, the kind that you can buy and hold for years (or decades) and generate market-beating returns. We’re all after that — that’s why we read articles like this one.
When investing for the future, readers have to look under the hood and find high-quality businesses. At the same time, it can be hard when looking for long-term investment stocks.
That’s because so many of the best stocks have already generated the life-changing returns that investors are currently looking for.
A stock like Apple (NASDAQ:AAPL) is an amazing business. But with a near-$3 trillion market valuation, there is a concern that its bigger growth days are behind it. Or take Johnson & Johnson (NYSE:JNJ). I love the company, but with a $425 billion market cap and only modest growth, it’s hard to imagine it outperforming the S&P 500 year-in and year-out.
So what are some long-term wealth stocks to buy now?
Investing for the Future: The Trade Desk (TTD)
There is absolutely nothing wrong with the businesses above (Apple and J&J). Almost any investor could make a case for them. However, I am looking for stocks that can generate outsized market returns over the long haul from here, not stocks that have already created those returns.
One such stock? The Trade Desk (NASDAQ:TTD): The Trade Desk is a digital advertising firm that utilizes a demand-side platform. This not only drives efficiency for the customer, but drives profit for the company. Further, The Trade Desk makes it easy for customers to leverage connected TVs, audio, video, mobile and other mediums for their advertising needs.
Before the pandemic, after the pandemic and through the 2022 bear market, investors experienced a lot of volatility in TTD stock. However, the company remained incredibly stable. It’s able to operate around the world (China included) and continues to churn out steady growth.
Consensus expectations call for more than 20% revenue growth this year and next year, to go alongside 17% earnings growth in 2023 and 20.5% growth in 2024.
Long-Term Wealth Stocks: PayPal (PYPL)
PayPal (NASDAQ:PYPL): This fintech company is a controversial pick when it comes to long-term wealth stocks. The biggest reason? Because the stock has fallen out of favor with the market and suffered a peak-to-trough decline in excess of 80%.
The stock has only recently hit a 52-week low. While many large cap and high growth stocks have come back to life, that has not been the case with PayPal. To be frank, I’m not sure why that’s been the case.
PayPal has a solid brand and has been one of the market’s favorite stocks over the years. From the time it was spun off in mid-2015 to its high in February 2020 (just before the Covid-19 selloff), PayPal stock rallied more than 225%.
It suffered a peak-to-trough decline of 34% during the Covid fallout — which was actually better than the S&P 500 — then soared another 277% to its all-time high in November 2021.
Despite estimates calling for roughly 20% earnings growth this year, PayPal stock trades at just 13 times earnings.
Maybe the stock will prove to be a value trap, but even if it can recoup half of its peak-to-trough losses by the end of the decade, we’re talking about a triple off the lows.
An Old Classic: Disney (DIS)
Last but not least, we have Disney (NYSE:DIS): Disney has been around for nearly a century, as it approaches its 100-year anniversary in October. In that time, it’s become an entertainment conglomerate.
The firm dominates in everything from TV and sports, movies and studio releases, parks and entertainment, streaming and other ventures. Yet amid all of that preeminence, it’s hit quite a bit of turbulence.
While travel trends have propelled airlines, cruise stocks and other travel-oriented stocks, Disney has been left in the dust. In fact, it’s down 54% from its all-time high. If it can get back to that level, it will have more than doubled from its current price.
CEO Bob Iger is back and looking to turn this ship around. Disney is cutting costs and reducing expenses, while at the same time boasting more than 230 million paying, streaming subscribers across its Hulu, ESPN+ and Disney+ platforms. Disney+ alone has more than 157 million subs.
While Disney’s streaming strategy isn’t perfect, the firm is well-positioned in the future of at-home media consumption.
— Brett Kenwell
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Source: Investor Place